Title

Authors

Document Type

Article

Publication Date

Winter 2002

Publication Title

Financial Services Review

First Page

367

Last Page

379

Additional Publication URL

http://academyfinancial.org/financial-services-review/

Abstract

Investigates costs and risks associated with the choice of terms for adjustable rate mortgages. Impact of mortgage-rate changes on the size of payments for adjustable-rate mortgages; Examination of the choice of length of the fixed period before the occurrence of the first interest rate; Assessment of the choice of annual and lifetime caps for a standard one year adjustable rate mortgages.